Chinese Prime Minister Wen Jiabao held talks with his Bhutanese counterpart Jigmi Y. Thinley on the sidelines of the U.N. Conference on Sustainable Development in Rio De Janeiro on Thursday, the ministry said in a statement.

"China is willing ... to establish formal relations with Bhutan, resolve the border issue between the two nations at an early date, strengthen exchanges in all areas and advance Sino-Bhutanese relations to a new stage," Wen said.